WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Major European bourses were modesty weaker in early trade on Tuesday, pressured by market anxiety ahead of FOMC Chairman Janet Yellen’s semi-annual testimony before the US Senate’s Banking Panel later today. Amid expectations that the FOMC Chairman will probably provide further support to the prevailing view that the Central Bank will embark on a rate tightening later this year, the USD retained a firm tone against most of its major currency peers in European trade.
GREECE: The Greek government reportedly submitted a first list of reform measures to the country’s official creditors shortly after midnight on Monday, as part of the February 20 Eurogroup agreement envisioning a four month extension of Greece’s Master Financial Assistance Facility Agreement (MFFA). Euro area finance ministers will hold an extraordinary meeting later today, probably via teleconference, to assess, in line with the accompanying Feb. 20 Eurogroup statement, whether the submitted list “is comprehensive enough to be a valid starting point for a successful conclusion of the review
SOUTH EASTERN EUROPE
SERBIA: The IMF Executive Board approved on Monday a 3-year €1.2bn new Stand-By Arrangement for Serbia.
CESEE MARKETS: Emerging stock markets were mixed in early European trade on Tuesday, as caution prevailed ahead of FOMC Chairman Janet Yellen’s semi-annual testimony before the US Senate’s Banking Panel. Separately, CEE currencies were mixed and government bonds firmed ahead of Central Bank monetary policy meetings in the coming days.
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